Jack Dorsey’s Square Cash App for Buying Bitcoin Gets Targeted by Scammers Saying Stellar is Now Supported

Jack Dorsey is known for heading up two major companies – Twitter and Square. Twitter is more well-known by the public, providing a massive social media platform for consumers to post about anything that catches their interest. However, in the last few months, there have been multiple hacks that have taken over verified accounts, trying to entice consumers to contribute various crypto assets for a chance to win a prize. Though these scams appear to have died down, Dorsey is now facing a bitcoin scam within Square.

Scammers attacked users by sending emails that appeared as if they were from Square itself. The email included details about adding support for the Stellar (XLM) cryptocurrency, which Dorsey confirms is not true.

square bitcoin scam

The email continues, asking the users to send $10 in BTC to the listed address in the message. In return, they are promised 350 XLM, which is about $30 right now. Though the total number of users emailed is unknown, it is clear that these investors are smart because there have been no contributions to the account yet. In the past, Square has been consistently proactive about warning their users of fraudulent emails like this one.

Scammers have kept a broad approach to the scams, targeting everyone from the everyday investor to small businesses that use the payment processing services that Square hosts. These types of scams have become so widespread that there have been multiple reports and plenty of attention from the Better Business Bureau (BBB). The firm has discovered that the hackers use the service that Square offers to send phishing emails, holding onto the information that the user provides to steal funds and personal data.

The hacking is coming at a terrible time, though there is never really a good time to be hacked. The earnings that Square has seen so far have been abysmal, though there is still be some gains. In fact, the changes in revenue have been severe enough that the company released a letter to shareholders.

The letter says,

“We accelerated top-line growth at significant scale in the fourth quarter of 2017. Total net revenue was $616 million, up 36% year over year, and Adjusted Revenue was $283 million, up 47% year over year. This is an increase from the third quarter of 2017, when total net revenue and Adjusted Revenue grew 33% and 45%, respectively, year over year.”

Still, even with the letter, investors are still worried about what is in store in the future for Square. The first quarter did not do so well, and some of their investors were even selling off their stocks. BTIG analyst Mark Palmer spoke on Square’s actions, saying,

“While Square’s guidance for 1Q19 and FY19 revenue was in line with Street expectations – the midpoint of its FY19 revenue guidance would represent year-over-year growth of 41%, consistent with the soft guidance that management had provided in November – its lower-than-expected bottom-line forecast was due to an increase in spending on newer services outside of its core payment-processing business.”

Dorsey has been a proponent of Bitcoin for years, even suggesting that this original crypto asset could become the leading currency of the world in the next decade.

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